Mumbai, Mar 16 (PTI) The Indian rupee pared its initial
gains, while holding its 16-months highs by 28 paise to 65.41
in late morning deals, on the back of continued unwinding of
dollars from banks and exporters amid heavy foreign capital
inflows and strong equities.

Earlier, the rupee resumed higher at 65.40 as against
Wednesday's closing level of 65.69. Later, it strengthened
sharply to 65.21 before trading at 65.41 at 1020 hours.

The domestic currency hovered in a range of 65.41 and
65.21 during morning deals.

Meanwhile, the dollar index was trading lower by 0.17
per cent at 100.57 against a basket of six currencies in late
morning trade.

Overseas, the US dollar struggled at one-month low against
basket currencies in early Asian trade, after the Federal
Reserve sounded less hawkish than anticipated on future rate
hikes, while the euro stood tall after Dutch exit polls
pointed to a comfortable win by Prime Minister Mark Rutte over
his far-right rival Geert Wilders.

Meanwhile, the benchmark Sensex rallied, trading higher
by 164.93 points, or 0.58 per cent, in late morning deals.